Why would the IRS come to my house?
In certain situations, the IRS will in fact come to your house or place of business. These field audits always occur after several attempts for communication has been made by the Agency and all have gone unanswered by you.
It is not against the law for the IRS to contact anyone that may have information on your whereabouts to collect on your debt. This includes but is not limited to neighbors, friends, relatives, business associates, and employers.
Most field audits are for those of extreme cases, where, for instance, you have claimed 100% of your home office is used for business purposes only. They may come to your house to verify that this is in fact true. They may also perform a field audit in an attempt to try and locate you and verify that the lifestyle you have claimed on your income taxes is in fact the lifestyle you are living. What assets do you visible? Did you claim that boat in your driveway? Is that car registered to you? When did you add that addition to your home?
It is always best to answer the IRS when a notice is sent to you. Ignoring the situation will only make matters worse and will not go away. If you have received a notice, it is best to anticipate an audit and educate yourself of the situation and review your past taxes.
However, if you do find yourself in a situation where a Revenue Officer is knocking on your door, please ensure that you are informed of your rights:
- The IRS only performs a field audit for major violations so if they do knock on your door, it is best to not immediately talk to them, but get a CPA or attorney to settle this matter as soon as possible.
- Once you have representation the IRS cannot interview you alone.
- All information is confidential and cannot be openly discussed.
- You must be treated with respect and courtesy by the IRS agent and you must treat them with the same.
- If an office visit is requested and you have representation, it is best to allow them to handle the visit and you not show up.
- If the IRS is given 10 days’ notice, you are allowed to record the interview.
Remember, a lot of this can be avoided if you respond to any IRS correspondence immediately, hire representation at first sight of any issues, and are well informed of your rights.
Please call today, if you have further concerns or questions.